Tag: WTO

China joined rules-based trading system — then broke the rules

Posted on by Lone Candle

“It’s been 20 years since China entered the global trade body, the World Trade Organization, a move that gave it access to the international trade system.”

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“China’s WTO accession has rendered the U.S. undeniable gains. Consumers have enjoyed two decades of relatively inexpensive imported consumer goods, which boosted their buying power and the economy. A 2019 analysis by the London School of Economics of the impact of China’s WTO entry on U.S. consumer prices concluded that “each US household saw its annual purchasing power increase by $1,500 thanks to lower prices caused by increased trade with China from 2000 to 2007.”
WTO-brokered access to the Chinese market for U.S. agricultural products has reaped an export boom for farmers and agribusiness. And the U.S.-China Business Council’s 2021 member survey revealed that “ninety-five percent of respondents report that their China operations were profitable over the last year.”

But there is compelling data that China’s WTO entry helped accelerate America’s deindustrialization. A 2020 analysis by the nonprofit Economic Policy Institute, a labor-oriented think tank, estimated in January 2020 that the U.S. trade deficit with China resulted in the loss of 3.7 million jobs from 2001-2018.

The Chinese government’s willingness to push its economy to a more market-oriented setting broadly ground to a halt by around 2008. And that may have been the plan.

“When we promised to adopt a market economy, we made it absolutely clear that it would be a socialist market economy,” Long Yongtu, China’s chief negotiator for WTO accession, said in an interview in May. That effectively meant that China exploited foreign market access while blocking the U.S. from the Chinese market through measures largely outside of the WTO’s supervision and enforcement mechanisms.”

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“Practically..the WTO may be incapable of bringing China’s unfair trading practices to heel because all 164 member nations — including China itself — need to accede to any new agreements.

“I don’t think the WTO can adequately discipline Chinese government practices because the rules of the WTO are now old,” Barshefsky said.”

EU trade chief warns Biden over ‘Buy American’ push

Posted on by Lone Candle

“U.S. President Joe Biden has already started tightening U.S. rules that force federal authorities to buy from American suppliers. This could run foul of Washington’s commitments at the World Trade Organization (WTO), under which it wins access to other countries’ public procurement markets in exchange for keeping its own market open.

While signaling the EU was worried about Washington’s steps, Dombrovskis stopped just short of saying Biden was breaking WTO rules.

“As regards Buy American, this is something which will require some more in-depth assessment, what are the exact implications, what are the implications for EU companies, what does it mean for U.S. commitments in the WTO framework,” Dombrovskis said.”

Josh Hawley Wants To Wreck America’s Economy To Own the Libs

Posted on by Lone Candle

“According to the Bureau of Labor Statistics, inflation-adjusted median weekly earnings for American workers have increased by 17 percent since 1995, when the WTO was founded. Meanwhile, American manufacturing has never been more valuable than it is now, as the country’s industrial production last year was 48 percent higher than in 1995, according to the Federal Reserve.”

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“Withdrawing from the WTO would leave America cut off from the lower tariff rates that member nations grant to one another, effectively raising barriers to American exports and harming American manufacturing and farming. The global trade that’s possible because of America’s membership in the WTO boosts the U.S. economy by $2.1 trillion every year”

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“the WTO did not simply materialize in the mid-1990s nor can it be easily replaced. It was the result of a decadeslong experiment in expanding the economic co-dependence of the world’s largest economies. That experiment increased prosperity and reduce major wars across the planet.”